Collins, one of the staunchest allies of President Donald Trump in the Congress, was also charged with lying to the Federal Bureau of Investigation during an April 2018 interview, as prosecutors charge that he relayed information about a failed drug trial by the company, Innate Immunotherapuetics.

Collins was the biggest investor in the company, which is developing treatments for multiple sclerosis, and he reportedly was pitching it as a good investment to friends and House colleagues.

On the day after the trial results were released, the company's stock lost 92 percent of its value.

"The crime that [Collins] committed was to tip his son Cameron so that Cameron and a few others could trade on the news while the investing public remained in the dark", Berman said.

The indictment charges Collins, the congressman's son and the father of the son's fiance, with conspiracy, wire fraud and other counts.

A U.S. congressman has been accused of using inside information to make illicit stock trades.

Two lawyers for Collins, Jonathan Barr and Jonathan New, said in a statement that they were confident he would be "completely vindicated and exonerated".

Collins, who is one of the wealthiest members of Congress, was the first member to publicly endorse Donald Trump during the 2016 presidential campaign. "They could only sell those shares on the initial tip of inside information by Congressman Collins".

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Rep. Doug Lamborn and his wife also held stake in Innate Immunotherapeutics though an IRA, according to the Colorado Republican's most recent financial disclosure. During the tax reform debate, when his fellow New York GOP members of Congress were up in arms about a provision that would likely raise taxes on many New Yorkers, Collins voiced support for the plan.

House Speaker Paul Ryan said Wednesday that Collins would be removed from the House Energy and Commerce Committee "until the matter is settled".

As a result, Cameron Collins avoided $570,900 in losses. "How are these results even possible???" he wrote to the CEO of Innate.

"Congressman Collins violated his duty to keep innate information secret", said Geoffrey Berman, the USA attorney for the Southern District of NY, in a news conference Wednesday.

Chris Collins couldn't sell off his stock, according to prosecutors; He was already under a congressional ethics investigation and his stock was in the Australian markets, which had already halted trading of Innate stock.

No allegations of misconduct have been leveled against him or Conaway, a former chairman of the House Ethics Committee. "Insider trading is a clear violation of the public trust".

Collins, 68, has served in the House since 2012 and has planned on running for a fourth term in the November congressional elections.

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